A key characteristic of an oligopoly is that:
A) there are low entry barriers.
B) the behavior of one firm can affect the behavior of another.
C) no economic profit is earned by firms.
D) firms have no price-setting ability.

Question

Quizplus · Accepted Answer

In an oligopoly, the market is dominated by a few large firms, and the actions of one firm can significantly impact the actions and strategies of the other firms within the market. This interdependence is a defining characteristic of oligopolistic markets.

A Key Characteristic of an Oligopoly Is That